RadioShack in talks with investment banks
RadioShack Corp., a worldwide electronics retailer, engaged in talks with investment banks to look at ways to improve its finances, a representative of the company said.
"Like many companies, we have discussions with investment banks to help us evaluate ways to further strengthen our balance sheet and manage it efficiently. That has been the sole focus of these discussions." Kirk Brewer, a spokesman of RadioShack said.
The announcement from Debtwire reported that Radio Shack sought help from financial advisors. This lead to the decline in the firm's bond and share valuations. RadioShack shares dipped as much as 23% before ending yesterday at US$2.63 in New York.
Brewer said in a statement that the Texas-based company is aimed at executing a turnaround. He further added that RadioShack Corp. still had a solid balance sheet with liquidity totaling around US$820 million at the end of the first quarter.